One of the most tense and emotionally charged aspects of divorce can arise when dealing with property division. Divorce mediation provides couples with a guided but flexible approach to dividing assets in a way that suits both parties’ needs. Understanding how assets are divided during divorce mediation is crucial for any spouse considering or dealing with divorce. Reach out to an experienced Memphis, Tennessee property division lawyer for legal counsel and skilled advice.
Is Mediation Better than Litigation?
Divorce mediation is a process where a neutral third party (the mediator) helps to facilitate a discussion between a divorcing couple to help them reach an agreement on various issues related to the divorce. These issues can include asset division, child custody and support, and alimony payments.
It is difficult to say whether mediation is better than litigation or vice versa as every couple and relationship is different. People appreciate mediation because unlike litigation, where a judge makes all final decisions, mediation allows and encourages collaboration and communication between the spouses, giving them more control over the outcome of their divorce.
How Do Assets Get Divided During Divorce Mediation?
During this process, the asset division process is not unlike that of litigation. However, in mediation, the couple maintains full control over the outcome of the agreement. They can come up with unique and flexible solutions using open communication and honesty.
- Disclosing assets: The first step is full disclosure on both sides. Both parties are required to provide complete and honest information about their financial situation including all of their assets and liabilities.
- Valuing assets: Once all assets have been disclosed, appraisals and valuations can be done to estimate the worth of property and assets. This can be done with professional help for accurate distribution.
- Negotiations: The couple will negotiate how to divide their assets. Mediation allows for open dialogue and for each party to express their preferences and concerns. The mediator will help guide the negotiation and keep the couple on track.
- Drafting the agreement: Once an agreement has been reached that both parties are happy with, the mediator can draft a settlement agreement outlining how the assets will be divided and any terms that were agreed upon.
- Submitting the agreement: The agreement will be reviewed by each party’s legal representation and signed before being submitted to the court for approval.
Tennessee is an equitable distribution state. This means that when a couple gets divorced, all marital property will be divided equitably between the parties as opposed to equally. This decision is based heavily on each individual’s income, earning capacity, and separate assets.
The judge will review the agreement and determine whether or not it meets the state’s standards and requirements for fair distribution. If it does, it will be finalized along with the divorce decree. Speak with an experienced family lawyer to learn more about mediation and determine if it might be the right choice for you.
